Which of the following is true about predictions made during a total planning run?

Predictions made during a total planning run in SAP Materials Management are indeed based on historical data. This means that the system uses past consumption patterns, trends, and data to forecast future demand and supply needs. By leveraging historical data, the system provides a more informed basis for planning processes, allowing organizations to anticipate stock requirements, manage reorder points, and optimize inventory levels.

Utilizing historical data is essential in making predictions as it helps to identify trends that can be expected to continue in the future, although it does not guarantee that future conditions will always mimic past ones. This reliance on historical patterns is a core principle of forecasting in supply chain management, ensuring that decisions are grounded in actual past performance, rather than guesses or assumptions.

By contrast, predictions made during a planning run are not always accurate, and while they may provide a useful starting point, they often require further analysis and adjustments to align with current business conditions, operational changes, and market dynamics. This insight underscores the importance of continual review and refinement in planning activities.